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Posted by Phil Marti on February 19, 2007, 2:20 pm
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> My son who is 21, but only earned less than $1,000 last year
> and was totally supported by us formed a company, I think it
> is a DBA with a girl he knows. The mother of this girl who
> is in business loaned them some money for the business. The
> business did not make any money, I am not sure it even had
> any revenue last year. I know my son did not get paid any
> money out of the business. He now claims he was told we
> cannot claim him as a dependent, because if we did it would
> affect the loss (I assume the money loaned from the girl's
> mother) that they could carry forward to next year.
Since you supported him and his income was low enough, he's
a qualifying relative for dependency purposes. Claim him,
and tell him you're doing so. I suspect all this who shot
John about the business has to do with NOL's, but God alone
knows how they have this business set up.
While you're talking to him, you might want to mention that
"my girlfriend's mother" is not a universally accepted tax
law authority. I put her right up there with Sally's
cousin's roommate's boyfriend's mother's hairdresser, an
oft-cited source of "I heard..." bogus tax law.
--
Phil Marti
Clarksburg, MD
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